What is the definition of 'Local Marketing' for a Kidokinetics franchise?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
ing upon Franchisee.
12.2. Local Marketing.
12.2.1. In addition to the ongoing advertising contributions set forth herein, Franchisee shall spend annually, throughout the term of this Agreement, the greater of $500 or 2% of Gross Sales per
month on a rolling 12-month average ("Local Marketing Requirement") on advertising for the Kidokinetics Business within the Territory ("Local Marketing"). Franchisee is not required to spend more than the Local Marketing Requirement, but there is no limit on the amount Franchisee may spend on local advertising. Franchisor does not impose an additional Local Marketing Requirement for a single franchisee operating up to four outlets if they are operated by the same legal entity and have adjacent territories. On or before the 1st day of February each year, Franchisee must submit to Franchisor a Local Marketing expenditure report accurately reflecting such expenditures for the preceding annual period. If that day is not a business day, then such report will be due on the next business day. The following costs and expenditures incurred by Franchisee will not be included in Franchisee's expenditures on Local Marketing for purposes of this Section, unless approved in advance by Franchisor in writing: (i) incentive programs for employees or agents of Franchisee; (ii) research expenditures; (iii) salaries and expenses of any of Franchisee's personnel to attend advertising meetings, workshops or other marketing activities; or (iv) charitable, political or other contributions or donations. We may require you to subscribe to the email marketing subscription program we designate, such as Constant Contact or other similar email marketing programs, at your sole cost and expense. The fee for this is determined by the provider.
- 12.2.2.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, Local Marketing is defined as advertising for the Kidokinetics business within the franchisee's territory. Throughout the term of the Franchise Agreement, franchisees must spend annually on Local Marketing the greater of $500 or 2% of Gross Sales per month on a rolling 12-month average.
The Kidokinetics franchise agreement does not require franchisees to spend more than the Local Marketing Requirement. However, there is no limit to the amount a franchisee may spend on local advertising. If a single franchisee operates up to four outlets with the same legal entity and adjacent territories, Kidokinetics does not impose an additional Local Marketing Requirement.
Franchisees must submit a Local Marketing expenditure report to Kidokinetics on or before February 1st each year, accurately reflecting expenditures for the preceding annual period. Certain costs and expenditures are excluded from Local Marketing expenditures unless approved in advance by Kidokinetics in writing. These include incentive programs for employees or agents, research expenditures, salaries and expenses for personnel attending advertising meetings, and charitable or political contributions. Kidokinetics may also require franchisees to subscribe to a designated email marketing subscription program at their own cost.